Asian Markets Mostly Higher This Morning, Kospi Soars 5%

Asia-Pacific stock markets mostly strengthened on Thursday (25/6/2026), following a sector rotation on Wall Street amid easing pressure on global equity markets. Investors are also closely watching a series of important US economic data releases due today, including the Federal Reserve’s preferred inflation indicator. In South Korea, the Kospi index led regional gains, surging more than 5% in early trade, while the small-cap Kosdaq index rose 1.32%. Japan’s Nikkei 225 gained 1.28% and the Topix added 0.76%. Bucking the regional trend, Australia’s benchmark S&P/ASX 200 edged slightly lower at the start of the session. Carson Group Chief Market Strategist Ryan Detrick assessed that the rotation out of technology stocks in recent sessions is a positive signal for the broader equity market. He noted that broadening participation to other sectors indicates a healthier market condition compared to relying solely on tech stock gains. Detrick said investors are shifting towards the industrial and financial sectors, which are seen as having attractive prospects. He described the correction in technology shares during June as normal and not altering the overall positive market outlook. On the geopolitical front, the White House on Wednesday submitted a request to the US Congress for an additional US$87.6 billion in funding, partly to finance the war in Iran and other government spending needs. The request was conveyed by Office of Management and Budget Director Russell Vought in a letter to House Speaker Mike Johnson, but Democratic members of Congress immediately voiced their opposition to the proposal. Market participants are also anticipating the release of the Personal Consumption Expenditures (PCE) index for May, the Federal Reserve’s preferred inflation measure. Economists surveyed by Dow Jones expect the headline PCE index to rise 0.5% month-on-month and 4.1% year-on-year, higher than the 0.4% and 3.8% increases recorded in April. For core PCE, which excludes volatile food and energy components, the consensus forecast is for a 0.3% monthly rise and a 3.4% annual increase, also above April’s readings of 0.2% and 3.3% respectively. Beyond inflation data, investors will monitor other US economic indicators, including the final reading of first-quarter 2026 GDP, May personal income data, preliminary durable goods orders, and weekly jobless claims for the period ending 20 June. On the corporate front, several companies are scheduled to report earnings before the opening of Wall Street trading, including McCormick & Company, Commercial Metals Company, Darden Restaurants, and Winnebago Industries. On Wall Street, US stocks closed mixed on Wednesday. Equities were varied amid a sell-off in technology shares led by weakness in Micron Technology, with market participants awaiting the chipmaker’s earnings report due after the close. The Nasdaq Composite fell 0.43% to 25,476.64, while the S&P 500 slipped 0.10% to 7,358.22. In contrast, the Dow Jones Industrial Average rose 182.06 points, or 0.35%, to 51,848.90.